The meeting’s focal point was the adoption of the city’s budget and tax levy for the upcoming year. The council deliberated on detailed budget projections, emphasizing the importance of aligning expenses with core service delivery. The general fund budget is set to increase by 1.3%, rising to $7,577,882 from the previous year. Key budget considerations included adjustments within public safety and public works departments, while parks and recreation saw increased allocations, notably incorporating the community center.

Revenue diversification was highlighted as a strategic objective, with taxes constituting approximately 80% of the budget, a slight decrease due to rising charges for services, particularly from the community center. The budget also accounted for electric generation transition aid, designed to mitigate impacts from decommissioned generating units, although this aid is expected to decrease annually.

Property valuations played a role in shaping the tax strategy. The council reviewed assessments from the Shimmer County Assessor, noting variances across residential, commercial, and utility sectors. While residential properties exhibited stability, commercial and industrial properties experienced notable increases, potentially leading to higher tax liabilities for larger entities. The utility sector saw a 4% decrease in valuations, contributing to a projected 4% increase in overall property values.

The council discussed the implications of these valuations, emphasizing a desire to maintain a stable tax rate. For 2026, the estimated tax rate is projected to decrease slightly to 49.285, down from 50.071.

Public safety initiatives also featured prominently in the meeting. A joint powers agreement was approved for the use of a traffic safety vehicle with Elk River, designed to enhance enforcement efforts against speeding and distracted driving.

Further, the council approved an early renewal of its contract with Axon Enterprises, which provides essential equipment such as body cameras and tasers to the police department. The renewal locks in current pricing, projecting a potential cost savings amidst anticipated future price hikes.

Infrastructure improvements were another key agenda item, with the council approving HVAC system replacements for the domestic filter building and wastewater administration office. These upgrades address the aging infrastructure, ensuring reliability, especially during winter months. The council also discussed the acquisition of industrial property from James D. Properties.

In addition to budget and infrastructure matters, the council addressed zoning and planning decisions. An interim use permit for food production at a local site and a variance for a lean-to structure were both approved.

The meeting concluded with procedural matters, including the approval of the consent agenda and preparation for a public hearing on the 2026 fee schedule. Adjustments to administrative citation fees and utility rates were proposed, alongside updates to the yard waste site card policy.